Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 02, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-36182 | |
Entity Registrant Name | Xencor, Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-1622502 | |
Entity Address, Address Line One | 465 North Halstead Street | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Pasadena | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91107 | |
City Area Code | 626 | |
Local Phone Number | 305-5900 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | XNCR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 61,662,550 | |
Entity Central Index Key | 0001326732 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 31,034 | $ 53,790 |
Marketable debt securities | 460,367 | 497,725 |
Marketable equity securities | 44,535 | 42,210 |
Accounts receivable | 9,580 | 11,290 |
Prepaid expenses and other current assets | 16,736 | 18,145 |
Total current assets | 562,252 | 623,160 |
Property and equipment, net | 63,540 | 66,124 |
Patents, licenses, and other intangible assets, net | 18,852 | 18,663 |
Restricted cash | 382 | 380 |
Marketable debt securities - long term | 154,960 | 145,512 |
Marketable equity securities - long term | 43,560 | 64,210 |
Right of use (ROU) asset | 40,211 | 33,995 |
Other assets | 498 | 648 |
Total assets | 884,255 | 952,692 |
Current liabilities | ||
Accounts payable | 16,011 | 13,914 |
Accrued expenses | 13,491 | 23,564 |
Income tax payable | 5,782 | 5,782 |
Lease liabilities | 2,079 | 3,435 |
Deferred income | 34,088 | 31,682 |
Debt | 7,951 | 6,332 |
Total current liabilities | 79,402 | 84,709 |
Lease liabilities, net of current portion | 66,810 | 59,025 |
Deferred income, net of current portion | 113,367 | 125,183 |
Debt, net of current portion | 12,489 | 14,642 |
Total liabilities | 272,068 | 283,559 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred stock, $0.01 par value: 10,000,000 authorized shares; -0- issued and outstanding shares at March 31, 2024 and December 31, 2023 | 0 | 0 |
Common stock, $0.01 par value: 200,000,000 authorized shares at March 31, 2024 and December 31, 2023; 61,634,685 issued and outstanding at March 31, 2024 and 60,998,191 issued and outstanding at December 31, 2023 | 617 | 611 |
Additional paid-in capital | 1,144,468 | 1,131,266 |
Accumulated other comprehensive (loss) income | (154) | 1,291 |
Accumulated deficit | (532,405) | (464,372) |
Total stockholders’ equity attributable to Xencor, Inc. | 612,526 | 668,796 |
Non-controlling interest | (339) | 337 |
Total stockholders’ equity | 612,187 | 669,133 |
Total liabilities and stockholders’ equity | $ 884,255 | $ 952,692 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 61,634,685 | 60,998,191 |
Common stock, shares outstanding (in shares) | 61,634,685 | 60,998,191 |
Consolidated Statements of Loss
Consolidated Statements of Loss (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue | ||
Collaborations, milestones, and royalties | $ 12,805 | $ 18,962 |
Operating expenses | ||
Research and development | 56,873 | 65,552 |
General and administrative | 13,787 | 14,154 |
Total operating expenses | 70,660 | 79,706 |
Loss from operations | (57,855) | (60,744) |
Other income (expenses) | ||
Interest income, net | 7,471 | 2,892 |
Other expense, net | 0 | (13) |
Impairment on equity securities | (20,650) | 0 |
Gain (loss) on equity securities, net | 2,325 | (2,898) |
Total other expense, net | (10,854) | (19) |
Net loss | (68,709) | (60,763) |
Net loss attributable to non-controlling interest | (676) | 0 |
Net loss attributable to Xencor, Inc. | $ (68,033) | $ (60,763) |
Basic net loss per common share (in dollars per share) | $ (1.11) | $ (1.02) |
Diluted net loss per common share (in dollars per share) | $ (1.11) | $ (1.02) |
Weighted average shares used to compute net income (loss) per share attributable to common stockholders: | ||
Basic weighted average common shares outstanding (in shares) | 61,212,324 | 59,771,674 |
Diluted weighted average common shares outstanding (in shares) | 61,212,324 | 59,771,674 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (68,709) | $ (60,763) |
Net unrealized gain (loss) on marketable debt securities | (1,445) | 3,327 |
Comprehensive loss | (70,154) | (57,436) |
Comprehensive loss attributable to non-controlling interest | (676) | 0 |
Net loss attributable to Xencor, Inc. | $ (69,478) | $ (57,436) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Non-Controlling Interest |
Beginning balance (in shares) at Dec. 31, 2022 | 59,997,713 | |||||
Beginning balance at Dec. 31, 2022 | $ 727,496 | $ 601 | $ 1,072,132 | $ (6,952) | $ (338,285) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock awards (in shares) | 34,388 | |||||
Issuance of common stock upon exercise of stock awards | 924 | 924 | ||||
Issuance of restricted stock units (in shares) | 349,499 | |||||
Issuance of restricted stock units | 0 | $ 4 | (4) | |||
Comprehensive income (loss) | (57,436) | 3,327 | (60,763) | |||
Stock-based compensation | 12,599 | 12,599 | ||||
Ending balance (in shares) at Mar. 31, 2023 | 60,381,600 | |||||
Ending balance at Mar. 31, 2023 | 683,583 | $ 605 | 1,085,651 | (3,625) | (399,048) | 0 |
Beginning balance (in shares) at Dec. 31, 2023 | 60,998,191 | |||||
Beginning balance at Dec. 31, 2023 | 669,133 | $ 611 | 1,131,266 | 1,291 | (464,372) | 337 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock awards (in shares) | 152,682 | |||||
Issuance of common stock upon exercise of stock awards | 1,787 | $ 1 | 1,786 | |||
Issuance of restricted stock units (in shares) | 483,812 | |||||
Issuance of restricted stock units | 0 | $ 5 | (5) | |||
Comprehensive income (loss) | (70,154) | (1,445) | (68,033) | (676) | ||
Stock-based compensation | 11,421 | 11,421 | ||||
Ending balance (in shares) at Mar. 31, 2024 | 61,634,685 | |||||
Ending balance at Mar. 31, 2024 | $ 612,187 | $ 617 | $ 1,144,468 | $ (154) | $ (532,405) | $ (339) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities | ||
Net loss | $ (68,709) | $ (60,763) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 3,035 | 2,245 |
Accretion of discount on marketable debt securities | (5,601) | (1,661) |
Stock-based compensation | 11,421 | 12,599 |
Abandonment of capitalized intangible assets | 415 | 321 |
Gain on sale of marketable debt securities | (3) | 0 |
Change in fair value of equity securities | (2,325) | 2,898 |
Impairment on equity securities | 20,650 | 0 |
Non-cash interest expense | 1,067 | 0 |
Loss on disposal of assets | 6 | 1,379 |
Changes in operating assets and liabilities: | ||
Accounts receivable and contract asset | 1,710 | 9,135 |
Interest receivable from marketable debt securities | (1,310) | 248 |
Prepaid expenses and other assets | 1,559 | 1,204 |
Accounts payable | 2,097 | 5,254 |
Accrued expenses | (10,073) | (3,588) |
Lease liabilities and ROU assets | 213 | 331 |
Deferred revenue | 0 | (216) |
Deferred income | (9,410) | 0 |
Net cash used in operating activities | (55,258) | (30,614) |
Cash flows from investing activities | ||
Purchase of marketable securities | (136,532) | (95,228) |
Purchase of intangible assets | (929) | (407) |
Purchase of property and equipment | (132) | (10,783) |
Proceeds from maturities of marketable securities | 159,942 | 154,562 |
Proceeds from sale of marketable securities | 9,969 | 0 |
Net cash provided by investing activities | 32,318 | 48,144 |
Cash flows from financing activities | ||
Proceeds from issuance of common stock upon exercise of stock awards | 1,787 | 922 |
Repayment of liability for sale of future royalties | (1,601) | 0 |
Net cash provided by financing activities | 186 | 922 |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (22,754) | 18,452 |
Cash, cash equivalents, and restricted cash, beginning of period | 54,170 | 53,942 |
Cash, cash equivalents, and restricted cash, end of period | 31,416 | 72,394 |
Cash paid during the period for: | ||
Interest | 11 | 7 |
Supplemental disclosures of non-cash activities | ||
Unrealized (loss) gain on marketable securities | (1,445) | 3,327 |
ROU assets obtained | 7,166 | 0 |
Cash and cash equivalents | 31,034 | 72,394 |
Restricted cash | $ 382 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated interim financial statements for Xencor, Inc. (the Company, Xencor, we or us) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. The consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) that the management of the Company believes are necessary for a fair presentation of the periods presented. The preparation of consolidated interim financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets and liabilities at the date of the consolidated interim financial statements and the reported revenues and expenditures during the reported periods. These interim financial results are not necessarily indicative of the results expected for the full fiscal year or for any subsequent interim period. The accompanying unaudited consolidated interim financial statements and related notes should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2023 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 29, 2024. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Xencor, Inc. and Gale Therapeutics Inc. (Gale), a variable interest entity (VIE) in which we are the primary beneficiary. Since we own less than 100% of Gale, the Company records net loss attributable to non-controlling interests in its consolidated statements of income (loss) equal to the percentage of the economic or ownership interests retained in Gale by the non-controlling party. In determining whether we are the primary beneficiary of a VIE, we apply a qualitative approach that determines whether we have (1) the power to direct the activities of the VIE that most significantly impact the entity's economic performance and (2) the obligation to absorb losses of, or the right to receive benefits from the VIE that could potentially be significant to the VIE. We continuously assess whether we are the primary beneficiary of Gale as changes to existing relationships or future transactions result in us consolidating or deconsolidating Gale. Use of Estimates The preparation of consolidated interim financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, other comprehensive gain (loss) and the related disclosures. On an ongoing basis, management evaluates its estimates, including estimates related to its accrued clinical trial and manufacturing development expenses, stock-based compensation expense, evaluation of intangible assets, investments, leases and other assets for evidence of impairment, fair value measurements, and contingencies. Significant estimates in these consolidated interim financial statements include estimates made for royalty revenue, accrued research and development expenses, stock-based compensation expenses, intangible assets, incremental borrowing rate for right-of-use asset and lease liability, estimated standalone selling price of performance obligations, estimated time for completing delivery of performance obligations under certain arrangements, the likelihood of recognizing variable consideration, the carrying value of equity instruments without a readily determinable fair value, and recoverability of deferred tax assets. Reclassifications Certain prior year amounts in the consolidated financial statements and the notes thereto have been reclassified to conform to the current period's presentation. These reclassifications did not affect the prior period's total assets, liabilities, stockholders' equity, net loss or cash flows. During the three months ended March 31, 2024, we adopted a change in presentation on our consolidated statements of loss to include loss from disposal of fixed assets in operating expenses. The prior period has been revised to reflect this change in the presentation . Intangible Assets The Company maintains definite-lived intangible assets related to certain capitalized costs of acquired licenses and third-party costs incurred in establishing and maintaining its intellectual property rights to its platform technologies and development candidates. These assets are amortized over their useful lives, which are estimated to be the remaining patent life or the contractual term of the license. The straight-line method is used to record amortization expense. The Company assesses its intangible assets for impairment if indicators are present or changes in circumstances suggest that impairment may exist. There was no impairment charge recorded for the three months ended March 31, 2024 and 2023. The Company capitalizes certain in-process intangible assets that are then abandoned when they are no longer pursued or used in current research activities. We abandoned $0.4 million of in-process intangible assets for the three months ended March 31, 2024. We abandoned $0.3 million of in-process intangible assets during the three months ended March 31, 2023. Marketable Debt and Equity Securities The Company has an investment policy that includes guidelines on acceptable investment securities, minimum credit quality, maturity parameters, and concentration and diversification. The investment policy limits the maturity of any individual security to a maximum of 36 months. The average maturity of securities in the portfolio as of March 31, 2024 is less than 12 months. The Company invests its excess cash primarily in marketable debt securities issued by investment grade institutions. The Company considers its marketable debt securities to be available-for-sale because it is not more likely than not that the Company will be required to sell the securities before recovery of the amortized cost. These assets are carried at fair value and any impairment losses and recoveries related to the underlying issuer’s credit standing are recognized within other income (expense), while non-credit related impairment losses and recoveries are recognized within accumulated other comprehensive income (loss). There were no impairment losses or recoveries recorded for the three months ended March 31, 2024 and 2023. Accrued interest on marketable debt securities is included in the marketable securities’ carrying value. Each reporting period, the Company reviews its portfolio of marketable debt securities, using both quantitative and qualitative factors, to determine if each security’s fair value has declined below its amortized cost basis. During the three months ended March 31, 2024, the Company recorded an unrealized loss of $1.4 million in its portfolio of marketable debt securities. During the three months ended March 31, 2023, the Company recorded an unrealized gain of $3.3 million. The unrealized loss is due to the changing interest rate environment and is not due to changes in the credit quality of the underlying securities. The unrealized gain (loss) is recorded in other comprehensive income (loss) for the three months ended March 31, 2024 and 2023. The Company receives equity securities in connection with certain licensing transactions with its partners. These investments in equity securities are carried at fair value with changes in fair value recognized each period and reported within other income (expense). For equity securities with a readily determinable fair value, the Company remeasures these equity investments at each reporting period until such time that the investment is sold or disposed. If the Company sells an investment, any realized gain or loss on the sale of the securities will be recognized within other income (expense) in the consolidated statements of loss in the period of sale. The Company also has investments in equity securities without a readily determinable fair value, where the Company elects the measurement alternative to record the investment at its initial cost minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. There was an impairment charge of $20.6 million recorded for the three months ended March 31, 2024 in connection with equity securities without a readily determinable fair value. There was no impairment charge recorded for the three months ended March 31, 2023. Liability Related to the Sale of Future Revenues We treat the sale of future Monjuvi royalties as debt, amortized under the effective interest rate method over the estimated life of the Monjuvi Royalty Sale Agreement. See Note 11. The amortization of the liability related to the sale of future Monjuvi royalties is based on our current estimate of future royalty payments. Royalty revenue will be recognized as earned and the payments made will be a reduction of the liability when paid . Non-cash Interest Expense on the Liability Related to the Sale of Future Royalties The total expected royalty payments less the net proceeds received are recorded as non-cash interest expense over the life of the liability. Interest is imputed on the unamortized portion using the effective interest method and is recorded based on the timing of the payments received over the term of the Monjuvi Royalty Sale Agreement. The actual interest rate will be affected by the timing of the royalty payments and changes in the forecasted revenue. Deferred Income Related to the Sale of Future Revenues We treat the sale of future Ultomiris royalties as deferred income, amortized under the units-of-revenue method by computing a ratio of the proceeds received to the total expected payments over the term of the Ultomiris Royalty Sale Agreement. See Note 11. The amortization of the liability related to the sale of future royalties is based on our current estimate of future royalty payments. Royalty revenue will be recognized as earned and the payments made will be a reduction of the liability when paid. Recent Accounting Pronouncements There have been no material changes in recently issued or adopted accounting standards from those disclosed in the Company's 2023 Annual Report on Form 10-K. The Company has reviewed all recently issued accounting pronouncements and does not believe they will have a material impact on our results of operations, financial condition or cash flows. There have been no other material changes to the significant accounting policies previously disclosed in the Company’s 2023 Annual Report on Form 10-K. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial instruments included in the financial statements include cash and cash equivalents, marketable debt and equity securities, accounts receivable, accounts payable, and accrued expenses. Marketable debt securities, equity securities, and cash equivalents are carried at fair value. The fair value of the other financial instruments closely approximates their fair value due to their short-term maturities. The Company accounts for recurring and non-recurring fair value measurements in accordance with FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosures (ASC 820). ASC 820 defines fair value, establishes a fair value hierarchy for assets and liabilities measured at fair value, and requires expanded disclosure about fair value measurements. The ASC 820 hierarchy ranks the quality of reliable inputs, or assumptions, used in the determination of fair value and requires assets and liabilities carried at fair value to be classified and disclosed in one of the following three categories: Level 1— Fair value is determined by using unadjusted quoted prices that are available in active markets for identical assets or liabilities. Level 2— Fair value is determined by using inputs other than Level 1 quoted prices that are directly or indirectly observable. Inputs can include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets that are not active. Related inputs can also include those used in valuation or other pricing models, such as interest rates and yield curves that can be corroborated by observable market data. Level 3— Fair value is determined by inputs that are unobservable and not corroborated by market data. Use of these inputs involves significant and subjective judgments to be made by the reporting entity – e.g., determining an appropriate discount factor for illiquidity associated with a given security. The Company measures the fair value of financial assets using the highest level of inputs that are reasonably available as of the measurement date. The assets recorded at fair value are classified within the hierarchy as follows for the periods reported (in thousands): March 31, 2024 December 31, 2023 Total Level 1 Level 2 Total Level 1 Level 2 Money Market Funds $ 3,447 $ 3,447 $ — $ 25,520 $ 25,520 $ — Corporate Securities 264,629 — 264,629 228,723 — 228,723 Government Securities 350,698 — 350,698 414,514 — 414,514 $ 618,774 $ 3,447 $ 615,327 $ 668,757 $ 25,520 $ 643,237 |
Net Loss Per Common Share
Net Loss Per Common Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss Per Common Share | Net Loss Per Common Share Basic net income (loss) per common share is computed by dividing the net income (loss) attributable to Xencor by the weighted-average number of common shares outstanding during the period without consideration of common stock equivalents. Diluted net income (loss) per common share is computed by dividing the net income (loss) attributable to Xencor by the weighted-average number of common stock equivalents outstanding for the period. Potentially dilutive securities consisting of stock issuable pursuant to outstanding options and restricted stock units (RSUs), and stock issuable pursuant to the 2013 Employee Stock Purchase Plan (ESPP) are not included in the per common share calculation in periods when the inclusion of such shares would have an anti-dilutive effect. Basic and diluted net loss per common share is computed as follows: Three Months Ended 2024 2023 (in thousands, except share and per share data) Numerator: Net loss attributable to Xencor, Inc. $ (68,033) $ (60,763) Denominator: Weighted-average common shares outstanding used in computing basic and diluted net loss 61,212,324 59,771,674 Basic and diluted net loss per common share attributable to Xencor, Inc. $ (1.11) $ (1.02) |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2024 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). For each of the three-month periods ended March 31, 2024 and 2023, the only component of other comprehensive income (loss) is net unrealized gain (loss) on marketable debt securities. There were no material reclassifications out of accumulated other comprehensive income (loss) during each of the three-month periods ended March 31, 2024 and 2023. |
Marketable Debt and Equity Secu
Marketable Debt and Equity Securities | 3 Months Ended |
Mar. 31, 2024 | |
Marketable Securities [Abstract] | |
Marketable Debt and Equity Securities | Marketable Debt and Equity Securities The Company’s marketable debt securities held as of March 31, 2024 and December 31, 2023 are summarized below: March 31, 2024 Amortized Gross Gross Fair Value (in thousands) Money Market Funds $ 3,447 $ — $ — $ 3,447 Corporate Securities 264,706 69 (146) 264,629 Government Securities 350,764 141 (207) 350,698 $ 618,917 $ 210 $ (353) $ 618,774 Reported as Cash and cash equivalents $ 3,447 Marketable securities 615,327 Total investments $ 618,774 December 31, 2023 Amortized Gross Gross Fair Value (in thousands) Money Market Funds $ 25,520 $ — $ — $ 25,520 Corporate Securities 228,382 342 (1) 228,723 Government Securities 413,553 1,037 (76) 414,514 $ 667,455 $ 1,379 $ (77) $ 668,757 Reported as Cash and cash equivalents $ 25,520 Marketable securities 643,237 Total investments $ 668,757 The maturities of the Company’s marketable debt securities as of March 31, 2024 are as follows: March 31, 2024 Amortized Estimated (in thousands) Mature in one year or less $ 460,336 $ 460,367 Mature within two years 155,134 154,960 $ 615,470 $ 615,327 The unrealized losses on available-for-sale investments and their related fair values as of March 31, 2024 and December 31, 2023 are as follows: Less than 12 months 12 months or greater March 31, 2024 Fair value Unrealized Fair value Unrealized (in thousands) Corporate Securities $ 51,230 $ (42) $ 53,122 $ (104) Government Securities 110,170 (35) 36,427 (172) $ 161,400 $ (77) $ 89,549 $ (276) Less than 12 months 12 months or greater December 31, 2023 Fair value Unrealized Fair value Unrealized (in thousands) Corporate Securities $ 8,073 $ (1) $ — $ — Government Securities 66,546 (76) — — $ 74,619 $ (77) $ — $ — The unrealized losses from the available-for-sale securities are due to changes in the interest rate environment and not changes in the credit quality of the underlying securities in the portfolio. The Company’s equity securities include securities with a readily determinable fair value. These investments are carried at fair value with changes in fair value recognized each period and reported within other income (expense), net. For the three months ended March 31, 2024, a gain of $2.3 million was recorded under other income (expense) related to these securities. For the three months ended March 31, 2023, a loss of $2.9 million was recorded under other income (expense). Equity securities with a readily determinable fair value, which are categorized as Level 1 in the fair value hierarchy under ASC 820, and their fair values (in thousands) as of March 31, 2024 and December 31, 2023 are as follows: Fair Value Fair Value March 31, 2024 December 31, 2023 Astria Common Stock $ 9,823 $ 5,360 INmune Common Stock 22,155 21,231 Viridian Common Stock 12,557 15,619 $ 44,535 $ 42,210 The Company holds 697,867 shares of common stock of Astria as of March 31, 2024. The common stock has a readily determinable fair value, and the Company recorded a gain in equity securities related to the adjustment in the fair value of Astria common stock for the three months ended March 31, 2024. The Company currently holds 1,885,533 shares of common stock of INmune Bio, Inc. (INmune). The 1,885,533 shares of INmune common stock are classified as equity securities with a readily determinable fair value, and the adjustment in the fair value of the shares of INmune common stock has been recorded as a gain in equity securities for the three months ended March 31, 2024. The Company currently holds 717,144 shares of common stock of Viridian Therapeutics, Inc. (Viridian). The shares of Viridian common stock are classified as equity securities with a readily determinable fair value, and the adjustment in the fair value of the shares of Viridian common stock was recorded as a loss in equity securities for the three months ended March 31, 2024. Unrealized gain (loss) recognized on equity securities during each of the three-month periods ended March 31, 2024 and 2023, consist of the following: Three Months Ended 2024 2023 Net and unrealized gain (loss) recognized on equity securities $ 2,325 $ (2,898) The Company also has investments in equity securities without a readily determinable fair value. The Company elects the measurement alternative to record these investments at their initial cost and evaluates such investments at each reporting period for evidence of impairment, or observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Equity securities without a readily determinable fair value and their carrying values (in thousands) as of March 31, 2024 and December 31, 2023 are as follows: Carrying Value Carrying Value March 31, 2024 December 31, 2023 Zenas Preferred Stock $ 43,560 $ 64,210 The Company currently holds an equity interest in Zenas BioPharma, Inc. (Zenas), a private biotechnology company. The Company’s equity interests include preferred stock in Zenas which were received as upfront payments and a milestone payment for licensing certain clinical and preclinical assets from the Company. The Company elected the measurement alternative to carry the Zenas equity at cost minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. During the three months ended March 31, 2024, we recorded a $20.6 million impairment charge as a result of Zenas closing a Series C financing transaction on May 3, 2024 as the transaction suggested an indicator of impairment that existed at March 31, 2024. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock Based Compensation In June 2023, our Board of Directors (the Board) and stockholders approved the 2023 Equity Incentive Plan (the 2023 Plan), which became effective as of June 14, 2023. The Board and the requisite stockholders previously approved the 2013 Equity Incentive Plan (the 2013 Plan). We suspended the 2013 Plan, and no additional award may be granted under the 2013 Plan. The 2023 Plan reserve consists of 3,000,000 shares and the remaining available shares from the 2013 Plan as of the effective date of the 2023 Plan. In addition, any shares of common stock covered by awards granted under the 2013 Plan that terminate on or after June 14, 2023 by expiration, forfeiture, cancellation, or other means without the issuance of such shares will be added to the 2023 Plan reserve. The 2023 Plan does not include a provision for an automatic increase in shares, also known as an evergreen provision. As of March 31, 2024, the total number of shares of common stock available for issuance under the 2023 Plan is 18,798,477, which includes shares of common stock that were available for issuance under the prior Plans as of the effective date of the 2023 Plan. As of March 31, 2024, a total of 1,977,176 options have been granted under the 2023 Plan. In November 2013, the Board and our stockholders approved the ESPP, which became effective as of December 5, 2013. As of March 31, 2024, the total number of shares of common stock available for issuance under the ESPP is 1,041,340. Unless otherwise determined by the Board, beginning on January 1, 2014, and continuing until January 1, 2023, the total number of shares of common stock available for issuance under the ESPP automatically increased annually on January 1 by the lesser of (i) 1% of the total number of issued and outstanding shares of common stock as of December 31 of the immediately preceding year, or (ii) 621,814 shares of common stock. The automatic increase has expired, and the number of shares of common stock available for issuance under the ESPP was not increased on January 1, 2024. As of March 31, 2024, we have issued a total of 733,478 shares of common stock under the ESPP. During the three months ended March 31, 2024, the Company awarded 796,660 RSUs to certain employees. The standard vesting of these awards is generally in three equal annual installments and is contingent on an employee’s continued service to the Company. The fair value of these awards is determined based on the intrinsic value of the stock on the date of grant and will be recognized as stock-based compensation expense over the requisite service period. As of March 31, 2024, a total of 883,327 RSUs have been granted under the 2023 Plan. Total employee, director and non-employee stock-based compensation expense recognized for the three months ended March 31, 2024 and 2023 are as follows (in thousands): Three Months Ended 2024 2023 General and administrative $ 4,699 $ 4,276 Research and development 6,722 8,323 $ 11,421 $ 12,599 Three Months Ended 2024 2023 Stock options $ 6,873 $ 6,983 ESPP 206 322 RSUs 4,342 5,294 $ 11,421 $ 12,599 The following table summarizes option activity under our stock plans and related information: Number of Weighted Weighted Aggregate Balance at December 31, 2023 11,142,986 $ 29.60 6.03 $ 9,977 Options granted 1,763,778 $ 22.81 Options forfeited (206,485) $ 31.55 Options exercised (152,682) $ 11.70 Balance at March 31, 2024 12,547,597 $ 28.84 6.22 $ 9,618 Exercisable 8,185,860 $ 29.38 4.76 $ 9,465 We calculate the intrinsic value as the difference between the exercise price of the options and the closing price of common stock of $22.13 per share as of March 31, 2024. The weighted-average fair value of options granted during the three-month periods ended March 31, 2024 and 2023 were $22.81 and $31.40 per share, respectively. There were 1,620,256 options granted during the three-month period ended March 31, 2023. We estimated the fair value of each equity award, including stock options and shares issued under our ESPP, using the Black-Scholes option-pricing model based on the date of grant of such stock option or ESPP share issuance date, with the following weighted average assumptions for the three months ended March 31, 2024 and 2023: Options Three Months Ended 2024 2023 Expected term (years) 6.4 6.0 Expected volatility 50.0 % 50.5 % Risk-free interest rate 4.12 % 4.26 % Expected dividend yield — % — % ESPP Three Months Ended 2024 2023 Expected term (years) 0.5 - 2.0 0.5 - 2.0 Expected volatility 43.0% 43.2% - 55.7% Risk-free interest rate 4.71% - 5.39% 0.13% - 4.72% Expected dividend yield — % — % As of March 31, 2024, the unamortized compensation expense related to unvested stock options was $61.5 million. The remaining unamortized compensation expense will be recognized over the next 2.8 years. As of March 31, 2024, the unamortized compensation expense under our ESPP was $1.4 million. The remaining unamortized expense will be recognized over the next 1.7 years. The following table summarizes the RSU activity for the three-month period ended March 31, 2024: Restricted Weighted Unvested RSUs at December 31, 2023 1,490,040 $ 30.66 Granted 796,660 22.83 Vested (483,812) 32.34 Forfeited (91,443) 30.76 Unvested RSUs at March 31, 2024 1,711,445 $ 26.52 As of March 31, 2024, the unamortized compensation expense related to unvested RSUs was $40.6 million. The remaining unamortized expense will be recognized over the next 2.3 years. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company leases office and laboratory space in Monrovia, California under a lease that expires in December 2025 with an option to renew for an additional five years at then market rates. The Company has assessed that it is unlikely to exercise the option to extend the lease term. In June 2021, the Company entered into an Agreement of Lease (Lease Agreement) for laboratory and office space in Pasadena, California, which will expire in July 2035. The Lease Agreement provides for two separate phases of lease and occupancy. The first phase commenced on August 1, 2022 and provides the Company with an improvement allowance up to $17.0 million. The second phase of the lease agreement will commence no later than September 30, 2026 and includes an additional improvement allowance up to $3.3 million. In August 2022, the Company entered into an amendment, which the Company received an additional $5.0 million in tenant improvement allowance in exchange for an increase in the rental rate of the phase 1 space. The Company received delivery of the second phase premises on December 1, 2022. The Company placed the new facility into service in February 2023. In January 2024, the Company entered into an amendment, in which the Company will be paid for $0.7 million of tenant improvement allowance from the second phase for HVAC costs in the first phase. In August 2023, the Company entered into a Sublease Agreement for office space in San Diego, California. The term of the Sublease Agreement begins in September 2023 and ends in December 2027. In connection with the Sublease Agreement, the Company provided a $0.4 million Letter of Credit to the landlord. The Letter of Credit will decline over the term of the lease. The Company also entered into a Cash Collateral Agreement for $0.4 million, which is classified as restricted cash in the Consolidated Balance Sheets. The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants. The following table reconciles the undiscounted cash flows for the operating leases at March 31, 2024 to the operating lease liabilities recorded on the balance sheet (in thousands): Years ending December 31, For the remainder of 2024 $ 4,460 2025 8,022 2026 9,238 2027 9,560 2028 9,076 2029 9,331 Thereafter 57,104 Total undiscounted lease payments 106,791 Less: Tenant allowance (3,252) Less: Imputed interest (34,650) Present value of lease payments $ 68,889 Lease liabilities - short-term $ 2,079 Lease liabilities - long-term 66,810 Total lease liabilities $ 68,889 The following table summarizes lease costs and cash payments for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended 2024 2023 Operating lease cost $ 1,881 $ 2,181 Variable lease cost 830 234 Total lease costs $ 2,711 $ 2,415 Cash paid for amounts included in the measurement of lease liabilities $ 1,070 $ 724 As of March 31, 2024, the weighted-average remaining lease term for operating leases is 10.9 years, and the weighted-average discount rate for operating leases is 7.0%. As of March 31, 2023, the weighted-average remaining lease term for operating leases was 11.8 years, and the weighted-average discount rate for operating leases was 8.9%. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, the Company may be subject to various litigation and related matters arising in the ordinary course of business. The Company does not believe it is currently subject to any material matters where there is at least a reasonable possibility that a material loss may be incurred. The Company is obligated to make future payments to third parties pursuant to certain license agreements, including sublicense fees, royalties, and payments that become due and payable on the achievement of certain development and commercialization milestones. As the amount and timing of sublicense fees and the achievement and timing of these milestones are not probable and estimable, such commitments have not been included on the Company’s balance sheets for the periods ended March 31, 2024 and December 31, 2023. The Company has also entered into agreements with third-party vendors that will require us to make future payments upon the delivery of goods and services in future periods. |
Collaboration and Licensing Agr
Collaboration and Licensing Agreements | 3 Months Ended |
Mar. 31, 2024 | |
Collaboration and Licensing Agreements | |
Collaboration and Licensing Agreements | Collaboration and Licensing Agreements The following is a summary description of the material collaboration arrangements in the three months ended March 31, 2024 and 2023. Alexion Pharmaceuticals, Inc. In January 2013, the Company entered into an Option and License Agreement (the Alexion Agreement) with Alexion Pharmaceuticals, Inc. (Alexion). Under the terms of the Alexion Agreement, the Company granted to Alexion an exclusive research license, with limited sublicensing rights, to make and use the Company’s Xtend technology to evaluate and advance compounds. Alexion exercised its rights to one target program, ALXN1210, which is now marketed as Ultomiris®. The Company is entitled to receive royalties based on a percentage of net sales of Ultomiris sold by Alexion, its affiliates or its sublicensees, which percentage is in the low single digits. Alexion’s royalty obligations continue on a product-by-product and country-by-country basis until the expiration of the last-to-expire valid claim in a licensed patent covering the applicable product in such country. On November 3, 2023, the Company entered into the Ultomiris Royalty Sale Agreement with OMERS, in which OMERS acquired the rights to certain royalties associated with the existing license relating to Ultomiris. For the three months ended March 31, 2024, Company earned and recognized $9.4 million in non-cash royalty revenue under the Ultomiris Royalty Sale Agreement. The Company recognized $9.4 million of non-cash royalty revenue and $10.5 million of royalty revenue under this arrangement for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, there is no receivable and no deferred revenue related to this agreement. Astria Therapeutics, Inc. In connection with a licensing transaction, the Company received preferred and common stock in Astria. In January 2023, the Company exchanged its preferred stock for additional common stock in Astria. The Company recognized an unrealized gain of $4.5 million related to its equity interest in Astria for the three months ended March 31, 2024. The Company recognized an unrealized loss of $0.4 million related to its equity interest in Astria for the three months ended March 31, 2023. There is no deferred revenue as of March 31, 2024 related to this agreement. Genentech, Inc., and F. Hoffmann-La Roche Ltd In February 2019, the Company entered into a collaboration and license agreement (the Genentech Agreement) with Genentech, Inc. and F. Hoffmann-La Roche Ltd (collectively, Genentech) for the development and commercialization of novel IL-15 collaboration products (Collaboration Products), including efbalropendekin alfa (also named XmAb306 and RG6323), the Company’s IL-15/IL15Rα-Fc candidate. Under the terms of the Genentech Agreement, Genentech received an exclusive worldwide license to XmAb306 and we share in 45% of development and commercialization costs of Collaboration Products, and we are eligible to share in 45% of net profits and losses from the sale of approved products. However, in the fourth quarter of 2023, we agreed with Genentech to convert our current development cost and profit-sharing arrangement into a royalty and milestone payment-based arrangement. Pursuant to the terms of the amended agreement with Genentech, effective June 1, 2024, Genentech will assume sole responsibility over all clinical, regulatory and commercial activities. We are eligible to receive up to $600.0 million in milestones, including $115.0 million in development milestones, $185.0 million in regulatory milestones and $300.0 million in sales-based milestones and tiered royalties ranging from low double-digit to mid-teens percentages. The Company did not recognize revenue related to the Genentech Agreement for the three months ended March 31, 2024 or 2023. As of March 31, 2024, there is a $3.1 million payable related to cost-sharing development activities during the first quarter of 2024 for development studies being conducted under the Genentech Agreement. There is no deferred revenue as of March 31, 2024, as obligations to perform research activities have expired. INmune Bio, Inc. In connection with a licensing transaction, the Company received common stock in INmune. For the three months ended March 31, 2024 and 2023, the Company recorded unrealized gains of $0.9 million and $0.2 million, respectively, related to its investment in INmune. Janssen Biotech, Inc., a Johnson & Johnson company J&J Agreement In November 2020, the Company entered into a Collaboration and License Agreement (the J&J Agreement) with Janssen Biotech, Inc., a Johnson & Johnson company, pursuant to which the Company and J&J conducted research and development activities to discover novel CD28 bispecific antibodies for the treatment of prostate cancer. Xencor together with J&J conducted joint research activities to discover XmAb bispecific antibodies against CD28 and against an undisclosed prostate tumor-target with J&J maintaining exclusive worldwide rights to develop and commercialize licensed products identified from the research activities. Under the J&J Agreement, the Company conducted research activities and applied its bispecific Fc technology to antibodies targeting prostate cancer provided by J&J. Upon completion of the research activities J&J had a candidate selection option to advance an identified candidate for development and commercialization. In November 2021, the Company completed its performance obligations under the research activities and delivered CD28 bispecific antibodies to J&J. In December 2021, J&J selected a bispecific CD28 candidate for further development. J&J will assume full responsibility for development and commercialization of the CD28 bispecific antibody candidate. The Company did not recognize revenue for the three months ended March 31, 2024 and 2023 under the J&J Agreement. As of March 31, 2024, there is no deferred revenue related to this Agreement. Second J&J Agreement On October 1, 2021, the Company entered into a second Collaboration and License Agreement (the Second J&J Agreement) with J&J pursuant to which the Company granted J&J an exclusive worldwide license to develop, manufacture, and commercialize plamotamab, the Company’s CD20 x CD3 development candidate, and pursuant to which Xencor and J&J conducted research and development activities to discover novel CD28 bispecific antibodies. The parties conducted joint research activities for a two-year period to discover XmAb bispecific antibodies against CD28 and undisclosed B cell tumor-targets with J&J receiving exclusive worldwide rights, subject to certain Xencor opt-in rights, to develop, manufacture and commercialize pharmaceutical products that contain one or more of such discovered antibodies (CD28 Licensed Antibodies). The Agreement became effective on November 5, 2021. The Company will collaborate with J&J on further clinical development of plamotamab with J&J and share development costs with J&J paying 80% and the Company paying 20% of certain development costs. The Company is generally responsible for conducting research activities under the Second J&J Agreement, and J&J is generally responsible for all development, manufacturing, and commercialization activities for CD28 Licensed Antibodies that are advanced. Revenue from the research activities was recognized over a period of time through the end of the research term that services were rendered as we determined that the input method was the appropriate approach to recognize income for such services. There is a receivable of $1.9 million as of March 31, 2024, related to cost-sharing activities for development of plamotamab under the Second J&J Agreement. No revenue was recognized for the three months ended March 31, 2024, and the Company recognized $5.2 million of revenue for the three months ended March 31, 2023. There is no deferred revenue as of March 31, 2024 related to the Second J&J Agreement as obligations to perform research activities have expired. MorphoSys AG/Incyte Corporation In June 2010, the Company entered into a Collaboration and License Agreement with MorphoSys AG (MorphoSys), which was subsequently amended. Under the agreement, we granted MorphoSys an exclusive worldwide license to the Company’s patents and know-how to research, develop and commercialize the XmAb5574 product candidate (subsequently renamed MOR208 and tafasitamab) with the right to sublicense under certain conditions. In February 2024, Incyte Corporation acquired exclusive global development and commercialization rights to tafasitamab. If certain developmental, regulatory and sales milestones are achieved, the Company is eligible to receive future milestone payments and royalties. On November 3, 2023, the Company entered into the Monjuvi Royalty Sale Agreement with OMERS, pursuant to which OMERS acquired the rights to certain royalties earned after July 1, 2023 associated with the existing license relating to Monjuvi. For the three months ended March 31, 2024, the Company earned and recognized $2.9 million in royalty revenue, all of which was non-cash royalty revenue under the Monjuvi Royalty Sale Agreement. The Company recognized $2.9 million of non-cash royalty revenue and $1.8 million of royalty revenue during the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, there is a receivable of $3.4 million related to estimated royalties due under the arrangement. As of March 31, 2024, there is no deferred revenue related to this agreement. Vega Therapeutics, Inc. In October 2021, the Company entered into a Technology License Agreement (the Vega Agreement) with Vega Therapeutics, Inc. (Vega), in which the Company provided Vega a non-exclusive license to its Xtend Fc technology. In March 2024, Vega notified the Company that it initiated a Phase 1 study, and the Company recorded milestone revenue of $0.5 million. The Company recognized $0.5 million of revenue for the three months ended March 31, 2024. No revenue was recognized for the three months ended March 31, 2023. Vir Biotechnology, Inc. In 2019, the Company entered into a Patent License Agreement (the Vir Agreement) with Vir Biotechnology, Inc. (Vir) pursuant to which the Company provided a non-exclusive license to its Xtend technology for up to two targets. In March 2020, the Company entered into a second Patent License Agreement (the Second Vir Agreement) with Vir pursuant to which the Company provided a non-exclusive license to its Xtend technology to extend the half-life of novel antibodies Vir developed as potential treatments for patients with COVID-19, including sotrovimab. Under the terms of the Second Vir Agreement, Vir is responsible for all research, development, regulatory and commercial activities for the antibodies, and the Company is eligible to receive royalties on the net sales of approved products in the mid-single digit percentage range. Vir and its marketing partner, GSK, began recording sales for sotrovimab beginning in June 2021. No revenue was recognized for the three months ended March 31, 2024, and the Company recognized $1.5 million of royalty revenue for the three months ended March 31, 2023. As of March 31, 2024, there is no receivable related to estimated royalty due under this agreement, and there is no deferred revenue related to this agreement. Viridian Therapeutics, Inc. In December 2020 and in December 2021, the Company entered two separate license agreements with Viridian and received shares of Viridian common stock for each license. During 2023, Viridian terminated the initial license agreement, and the research term under the second license expired. The Company reported unrealized losses of $3.1 million and $2.7 million for the three months ended March 31, 2024 and 2023, respectively, related to the shares of Viridian common stock. The Company did not recognize revenue for the three months ended March 31, 2024 or 2023. There is no deferred revenue as of March 31, 2024 related to this agreement. Zenas BioPharma, Inc. In November 2020, the Company entered into a License Agreement (the Zenas Agreement) with Zenas, pursuant to which the Company received an equity interest in Zenas in exchange for the exclusive, worldwide rights to develop and commercialize drug candidates from the Company. The equity in Zenas is recorded at the fair value as of the date of the Zenas Agreement and is reviewed each reporting period for impairment or other evidence of change in value. In November 2021, the Company entered into a second License Agreement (Second Zenas Agreement) with Zenas, pursuant to which the Company received additional equity in Zenas in exchange for the exclusive worldwide rights to develop and commercialize the Company’s obexelimab (XmAb5871) drug candidate. Under the license, the Company is eligible to receive development, regulatory and sales milestones in connection with the development of obexelimab and royalties on net sales of approved products. The original equity received for the second license was a warrant to acquire additional shares of Zenas. The warrant was exchanged for additional preferred stock in Zenas in November 2022. The warrant in Zenas was recorded at its fair value as of the date of the Second Zenas Agreement and was reviewed each reporting period for impairment or other evidence of change in value. The preferred shares received in exchange for the warrant were recorded at their fair value at the date of the exchange and is reviewed each reporting period for impairment or other evidence of change in value. In 2023, Zenas initiated a Phase 3 clinical study with obexelimab and also dosed a second patient in the study. The Company received a development milestone in the form of additional preferred stock in Zenas with a fair value of $10.0 million. The Company recognized an impairment charge of $20.6 million in the three months ended March 31, 2024 due to an impairment analysis of the Zenas' Series C financing transaction. The Company did not record an impairment charge or change in the value of the Zenas equity in the three months ended March 31, 2023. The Company did not recognize any revenue for the three months ended March 31, 2024 or 2023, and there is no deferred revenue related to this agreement. Gale Therapeutics Inc. In the fourth quarter of 2023, the Company formed a subsidiary, Gale Therapeutics Inc. (Gale), to develop novel drug candidates with its Fc technologies. In December 2023, the Company entered into a Technology License Agreement (Gale License Agreement) with Gale in which Gale received an exclusive worldwide, royalty-bearing, non-transferable license to preclinical assets in exchange for royalties on future sales and an option for future drug candidates that Gale will develop. Concurrently, the Company entered into a Service Agreement (Gale Services Agreement) to provide research and development services and administrative support for Gale. In exchange for $7.5 million of funding, the Company acquired a majority stake in Gale. Total charges of $2.7 million under the Services Agreement for the three months ended March 31, 2024 were eliminated in consolidation. Revenues earned The revenues recorded for the three months ended March 31, 2024 and 2023 were earned principally from the following licensees (in millions): Three Months Ended 2024 2023 Alexion $ 9.4 $ 10.5 Janssen — 5.2 MorphoSys 2.9 1.8 Vega 0.5 — Vir — 1.5 Total $ 12.8 $ 19.0 The table below summarizes the disaggregation of revenue recorded for the three months ended March 31, 2024 and 2023 (in millions): Three Months Ended 2024 2023 Research collaboration $ — $ 0.2 Milestone 0.5 5.0 Royalties — 13.8 Non-cash royalties 12.3 — Total $ 12.8 $ 19.0 Remaining Performance Obligations and Deferred Revenue |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes There is no provision for income tax for the three months ended March 31, 2024 or 2023. As of March 31, 2024, the Company’s deferred income tax assets, consisting primarily of net operating loss and tax credit carryforwards, have been fully offset by a valuation allowance. |
Sales of Future Royalties
Sales of Future Royalties | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Sale of Future Royalties | Sale of Future Royalties Ultomiris Royalty Sale Agreement The Company evaluated the arrangement and determined that the proceeds from the sale of future royalties should be recorded as deferred income on the balance sheets as none of the criteria for classification as debt were met in accordance with ASC 470 Debt . The Company records the non-cash royalty revenue under the “units-of-revenue” method in the consolidated statements of income (loss). For the three months ended March 31, 2024, the Company recognized $9.4 million of non-cash royalty revenue. There is $147.5 million in deferred income as of March 31, 2024. Monjuvi Royalty Sale Agreement The Company evaluated the arrangement and determined that the proceeds from the sale of future royalties should be classified as debt according to ASC 470 Debt . As of March 31, 2024, the estimated effective rate under the agreement remains to be 21.1%. The Company will continue to reassess the estimate of total future royalty payment and prospectively adjust the imputed interest rate and related amortization if the estimate is materially different. For the three months ended March 31, 2024, the Company recognized $2.9 million of non-cash royalty revenue and $1.1 million of non-cash interest expense. The following table shows the activity within debt for the quarter ended March 31, 2024 (in thousands): March 31, 2024 Beginning balance of debt related to sale of future royalties $ 20,974 Royalties owed to OMERS 349 Royalties paid to OMERS (1,950) Non-cash interest expense recognized 1,067 Ending balance of debt related to sale of future royalties $ 20,440 Debt - short-term 7,951 Debt - long-term 12,489 Total debt $ 20,440 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On May 3, 2024, Zenas closed on a Series C financing transaction. We expect the financing will result in an impairment in the fair value of our investment in Zenas of approximately $20.6 million, using the difference between the carrying value of our investment and the share price in the financing transaction. We have recorded the amount as an impairment charge on equity securities in our statement of loss. We are evaluating the magnitude of this impairment, including an assessment of the liquidation preferences of the various classes of Zenas securities, which will be reflected in our next Quarterly Report on Form 10-Q. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Polices) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated interim financial statements for Xencor, Inc. (the Company, Xencor, we or us) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. The consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) that the management of the Company believes are necessary for a fair presentation of the periods presented. The preparation of consolidated interim financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets and liabilities at the date of the consolidated interim financial statements and the reported revenues and expenditures during the reported periods. These interim financial results are not necessarily indicative of the results expected for the full fiscal year or for any subsequent interim period. The accompanying unaudited consolidated interim financial statements and related notes should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2023 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 29, 2024. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Xencor, Inc. and Gale Therapeutics Inc. (Gale), a variable interest entity (VIE) in which we are the primary beneficiary. Since we own less than 100% of Gale, the Company records net loss attributable to non-controlling interests in its consolidated statements of income (loss) equal to the percentage of the economic or ownership interests retained in Gale by the non-controlling party. In determining whether we are the primary beneficiary of a VIE, we apply a qualitative approach that determines whether we have (1) the power to direct the activities of the VIE that most significantly impact the entity's economic performance and (2) the obligation to absorb losses of, or the right to receive benefits from the VIE that could potentially be significant to the VIE. We continuously assess whether we are the primary beneficiary of Gale as changes to existing relationships or future transactions result in us consolidating or deconsolidating Gale. |
Use of Estimates | Use of Estimates The preparation of consolidated interim financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, other comprehensive gain (loss) and the related disclosures. On an ongoing basis, management evaluates its estimates, including estimates related to its accrued clinical trial and manufacturing development expenses, stock-based compensation expense, evaluation of intangible assets, investments, leases and other assets for evidence of impairment, fair value measurements, and contingencies. Significant estimates in these consolidated interim financial statements include estimates made for royalty revenue, accrued research and development expenses, stock-based compensation expenses, intangible assets, incremental borrowing rate for right-of-use asset and lease liability, estimated standalone selling price of performance obligations, estimated time for completing delivery of performance obligations under certain arrangements, the likelihood of recognizing variable consideration, the carrying value of equity instruments without a readily determinable fair value, and recoverability of deferred tax assets. |
Reclassifications | Reclassifications Certain prior year amounts in the consolidated financial statements and the notes thereto have been reclassified to conform to the current period's presentation. These reclassifications did not affect the prior period's total assets, liabilities, stockholders' equity, net loss or cash flows. During the three months ended March 31, 2024, we adopted a change in presentation on our consolidated statements of loss to include loss from disposal of fixed assets in operating expenses. The prior period has been revised to reflect this change in the presentation . |
Intangible Assets | Intangible Assets The Company maintains definite-lived intangible assets related to certain capitalized costs of acquired licenses and third-party costs incurred in establishing and maintaining its intellectual property rights to its platform technologies and development candidates. These assets are amortized over their useful lives, which are estimated to be the remaining patent life or the contractual term of the license. The straight-line method is used to record amortization expense. The Company assesses its intangible assets for impairment if indicators are present or changes in circumstances suggest that impairment may exist. There was no impairment charge recorded for the three months ended March 31, 2024 and 2023. |
Marketable Debt and Equity Securities | Marketable Debt and Equity Securities The Company has an investment policy that includes guidelines on acceptable investment securities, minimum credit quality, maturity parameters, and concentration and diversification. The investment policy limits the maturity of any individual security to a maximum of 36 months. The average maturity of securities in the portfolio as of March 31, 2024 is less than 12 months. The Company invests its excess cash primarily in marketable debt securities issued by investment grade institutions. The Company considers its marketable debt securities to be available-for-sale because it is not more likely than not that the Company will be required to sell the securities before recovery of the amortized cost. These assets are carried at fair value and any impairment losses and recoveries related to the underlying issuer’s credit standing are recognized within other income (expense), while non-credit related impairment losses and recoveries are recognized within accumulated other comprehensive income (loss). There were no impairment losses or recoveries recorded for the three months ended March 31, 2024 and 2023. Accrued interest on marketable debt securities is included in the marketable securities’ carrying value. Each reporting period, the Company reviews its portfolio of marketable debt securities, using both quantitative and qualitative factors, to determine if each security’s fair value has declined below its amortized cost basis. During the three months ended March 31, 2024, the Company recorded an unrealized loss of $1.4 million in its portfolio of marketable debt securities. During the three months ended March 31, 2023, the Company recorded an unrealized gain of $3.3 million. The unrealized loss is due to the changing interest rate environment and is not due to changes in the credit quality of the underlying securities. The unrealized gain (loss) is recorded in other comprehensive income (loss) for the three months ended March 31, 2024 and 2023. The Company receives equity securities in connection with certain licensing transactions with its partners. These investments in equity securities are carried at fair value with changes in fair value recognized each period and reported within other income (expense). For equity securities with a readily determinable fair value, the Company remeasures these equity investments at each reporting period until such time that the investment is sold or disposed. If the Company sells an investment, any realized gain or loss on the sale of the securities will be recognized within other income (expense) in the consolidated statements of loss in the period of sale. The Company also has investments in equity securities without a readily determinable fair value, where the Company elects the measurement alternative to record the investment at its initial cost minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. There was an impairment charge of $20.6 million recorded for the three months ended March 31, 2024 in connection with equity securities without a readily determinable fair value. There was no impairment charge recorded for the three months ended March 31, 2023. |
Liability Related to the Sale of Future Royalties and Non-Cash Interest Expense on the Liability Related to the Sale of Future Royalties and Deferred Income Related to the Sale of Future Revenues | Liability Related to the Sale of Future Revenues We treat the sale of future Monjuvi royalties as debt, amortized under the effective interest rate method over the estimated life of the Monjuvi Royalty Sale Agreement. See Note 11. The amortization of the liability related to the sale of future Monjuvi royalties is based on our current estimate of future royalty payments. Royalty revenue will be recognized as earned and the payments made will be a reduction of the liability when paid . Non-cash Interest Expense on the Liability Related to the Sale of Future Royalties The total expected royalty payments less the net proceeds received are recorded as non-cash interest expense over the life of the liability. Interest is imputed on the unamortized portion using the effective interest method and is recorded based on the timing of the payments received over the term of the Monjuvi Royalty Sale Agreement. The actual interest rate will be affected by the timing of the royalty payments and changes in the forecasted revenue. Deferred Income Related to the Sale of Future Revenues We treat the sale of future Ultomiris royalties as deferred income, amortized under the units-of-revenue method by computing a ratio of the proceeds received to the total expected payments over the term of the Ultomiris Royalty Sale Agreement. See Note 11. The amortization of the liability related to the sale of future royalties is based on our current estimate of future royalty payments. Royalty revenue will be recognized as earned and the payments made will be a reduction of the liability when paid. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There have been no material changes in recently issued or adopted accounting standards from those disclosed in the Company's 2023 Annual Report on Form 10-K. The Company has reviewed all recently issued accounting pronouncements and does not believe they will have a material impact on our results of operations, financial condition or cash flows. There have been no other material changes to the significant accounting policies previously disclosed in the Company’s 2023 Annual Report on Form 10-K. |
Fair Value Measurement | Financial instruments included in the financial statements include cash and cash equivalents, marketable debt and equity securities, accounts receivable, accounts payable, and accrued expenses. Marketable debt securities, equity securities, and cash equivalents are carried at fair value. The fair value of the other financial instruments closely approximates their fair value due to their short-term maturities. The Company accounts for recurring and non-recurring fair value measurements in accordance with FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosures (ASC 820). ASC 820 defines fair value, establishes a fair value hierarchy for assets and liabilities measured at fair value, and requires expanded disclosure about fair value measurements. The ASC 820 hierarchy ranks the quality of reliable inputs, or assumptions, used in the determination of fair value and requires assets and liabilities carried at fair value to be classified and disclosed in one of the following three categories: Level 1— Fair value is determined by using unadjusted quoted prices that are available in active markets for identical assets or liabilities. Level 2— Fair value is determined by using inputs other than Level 1 quoted prices that are directly or indirectly observable. Inputs can include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets that are not active. Related inputs can also include those used in valuation or other pricing models, such as interest rates and yield curves that can be corroborated by observable market data. Level 3— Fair value is determined by inputs that are unobservable and not corroborated by market data. Use of these inputs involves significant and subjective judgments to be made by the reporting entity – e.g., determining an appropriate discount factor for illiquidity associated with a given security. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Recorded at Fair Value | The assets recorded at fair value are classified within the hierarchy as follows for the periods reported (in thousands): March 31, 2024 December 31, 2023 Total Level 1 Level 2 Total Level 1 Level 2 Money Market Funds $ 3,447 $ 3,447 $ — $ 25,520 $ 25,520 $ — Corporate Securities 264,629 — 264,629 228,723 — 228,723 Government Securities 350,698 — 350,698 414,514 — 414,514 $ 618,774 $ 3,447 $ 615,327 $ 668,757 $ 25,520 $ 643,237 |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss per Common Share | Basic and diluted net loss per common share is computed as follows: Three Months Ended 2024 2023 (in thousands, except share and per share data) Numerator: Net loss attributable to Xencor, Inc. $ (68,033) $ (60,763) Denominator: Weighted-average common shares outstanding used in computing basic and diluted net loss 61,212,324 59,771,674 Basic and diluted net loss per common share attributable to Xencor, Inc. $ (1.11) $ (1.02) |
Marketable Debt and Equity Se_2
Marketable Debt and Equity Securities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Marketable Securities [Abstract] | |
Schedule of Marketable Securities | The Company’s marketable debt securities held as of March 31, 2024 and December 31, 2023 are summarized below: March 31, 2024 Amortized Gross Gross Fair Value (in thousands) Money Market Funds $ 3,447 $ — $ — $ 3,447 Corporate Securities 264,706 69 (146) 264,629 Government Securities 350,764 141 (207) 350,698 $ 618,917 $ 210 $ (353) $ 618,774 Reported as Cash and cash equivalents $ 3,447 Marketable securities 615,327 Total investments $ 618,774 December 31, 2023 Amortized Gross Gross Fair Value (in thousands) Money Market Funds $ 25,520 $ — $ — $ 25,520 Corporate Securities 228,382 342 (1) 228,723 Government Securities 413,553 1,037 (76) 414,514 $ 667,455 $ 1,379 $ (77) $ 668,757 Reported as Cash and cash equivalents $ 25,520 Marketable securities 643,237 Total investments $ 668,757 |
Schedule of Maturities of Marketable Securities | The maturities of the Company’s marketable debt securities as of March 31, 2024 are as follows: March 31, 2024 Amortized Estimated (in thousands) Mature in one year or less $ 460,336 $ 460,367 Mature within two years 155,134 154,960 $ 615,470 $ 615,327 |
Schedule of Unrealized Losses on Available-for-Sale Investments | The unrealized losses on available-for-sale investments and their related fair values as of March 31, 2024 and December 31, 2023 are as follows: Less than 12 months 12 months or greater March 31, 2024 Fair value Unrealized Fair value Unrealized (in thousands) Corporate Securities $ 51,230 $ (42) $ 53,122 $ (104) Government Securities 110,170 (35) 36,427 (172) $ 161,400 $ (77) $ 89,549 $ (276) Less than 12 months 12 months or greater December 31, 2023 Fair value Unrealized Fair value Unrealized (in thousands) Corporate Securities $ 8,073 $ (1) $ — $ — Government Securities 66,546 (76) — — $ 74,619 $ (77) $ — $ — |
Schedule of Equity Securities with Readily Determinable Fair Value | Equity securities with a readily determinable fair value, which are categorized as Level 1 in the fair value hierarchy under ASC 820, and their fair values (in thousands) as of March 31, 2024 and December 31, 2023 are as follows: Fair Value Fair Value March 31, 2024 December 31, 2023 Astria Common Stock $ 9,823 $ 5,360 INmune Common Stock 22,155 21,231 Viridian Common Stock 12,557 15,619 $ 44,535 $ 42,210 |
Schedule of Net Gains and Losses | Unrealized gain (loss) recognized on equity securities during each of the three-month periods ended March 31, 2024 and 2023, consist of the following: Three Months Ended 2024 2023 Net and unrealized gain (loss) recognized on equity securities $ 2,325 $ (2,898) |
Schedule of Equity Securities Without Readily Determinable Fair Value | Equity securities without a readily determinable fair value and their carrying values (in thousands) as of March 31, 2024 and December 31, 2023 are as follows: Carrying Value Carrying Value March 31, 2024 December 31, 2023 Zenas Preferred Stock $ 43,560 $ 64,210 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Total Employee, Director and Non-Employee Stock-Based Compensation Expense Recognized | Total employee, director and non-employee stock-based compensation expense recognized for the three months ended March 31, 2024 and 2023 are as follows (in thousands): Three Months Ended 2024 2023 General and administrative $ 4,699 $ 4,276 Research and development 6,722 8,323 $ 11,421 $ 12,599 Three Months Ended 2024 2023 Stock options $ 6,873 $ 6,983 ESPP 206 322 RSUs 4,342 5,294 $ 11,421 $ 12,599 |
Summary of Stock Option Activity | The following table summarizes option activity under our stock plans and related information: Number of Weighted Weighted Aggregate Balance at December 31, 2023 11,142,986 $ 29.60 6.03 $ 9,977 Options granted 1,763,778 $ 22.81 Options forfeited (206,485) $ 31.55 Options exercised (152,682) $ 11.70 Balance at March 31, 2024 12,547,597 $ 28.84 6.22 $ 9,618 Exercisable 8,185,860 $ 29.38 4.76 $ 9,465 |
Schedule of Weighted Average Assumptions Used for Estimation of Fair Value of Stock Options | We estimated the fair value of each equity award, including stock options and shares issued under our ESPP, using the Black-Scholes option-pricing model based on the date of grant of such stock option or ESPP share issuance date, with the following weighted average assumptions for the three months ended March 31, 2024 and 2023: Options Three Months Ended 2024 2023 Expected term (years) 6.4 6.0 Expected volatility 50.0 % 50.5 % Risk-free interest rate 4.12 % 4.26 % Expected dividend yield — % — % |
Schedule of Weighted Average Assumptions Used for Estimation of Fair Value of ESPP | ESPP Three Months Ended 2024 2023 Expected term (years) 0.5 - 2.0 0.5 - 2.0 Expected volatility 43.0% 43.2% - 55.7% Risk-free interest rate 4.71% - 5.39% 0.13% - 4.72% Expected dividend yield — % — % |
Summary of Restricted Stock Unit Activity | The following table summarizes the RSU activity for the three-month period ended March 31, 2024: Restricted Weighted Unvested RSUs at December 31, 2023 1,490,040 $ 30.66 Granted 796,660 22.83 Vested (483,812) 32.34 Forfeited (91,443) 30.76 Unvested RSUs at March 31, 2024 1,711,445 $ 26.52 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities Maturities | The following table reconciles the undiscounted cash flows for the operating leases at March 31, 2024 to the operating lease liabilities recorded on the balance sheet (in thousands): Years ending December 31, For the remainder of 2024 $ 4,460 2025 8,022 2026 9,238 2027 9,560 2028 9,076 2029 9,331 Thereafter 57,104 Total undiscounted lease payments 106,791 Less: Tenant allowance (3,252) Less: Imputed interest (34,650) Present value of lease payments $ 68,889 Lease liabilities - short-term $ 2,079 Lease liabilities - long-term 66,810 Total lease liabilities $ 68,889 |
Summary of Lease Costs and Cash Disclosures | The following table summarizes lease costs and cash payments for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended 2024 2023 Operating lease cost $ 1,881 $ 2,181 Variable lease cost 830 234 Total lease costs $ 2,711 $ 2,415 Cash paid for amounts included in the measurement of lease liabilities $ 1,070 $ 724 |
Collaboration and Licensing A_2
Collaboration and Licensing Agreements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Collaboration and Licensing Agreements | |
Schedule of Revenue by Licensees | The revenues recorded for the three months ended March 31, 2024 and 2023 were earned principally from the following licensees (in millions): Three Months Ended 2024 2023 Alexion $ 9.4 $ 10.5 Janssen — 5.2 MorphoSys 2.9 1.8 Vega 0.5 — Vir — 1.5 Total $ 12.8 $ 19.0 |
Schedule of Disaggregation of Revenue | The table below summarizes the disaggregation of revenue recorded for the three months ended March 31, 2024 and 2023 (in millions): Three Months Ended 2024 2023 Research collaboration $ — $ 0.2 Milestone 0.5 5.0 Royalties — 13.8 Non-cash royalties 12.3 — Total $ 12.8 $ 19.0 |
Sales of Future Royalties (Tabl
Sales of Future Royalties (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Debt of Future Royalties | The following table shows the activity within debt for the quarter ended March 31, 2024 (in thousands): March 31, 2024 Beginning balance of debt related to sale of future royalties $ 20,974 Royalties owed to OMERS 349 Royalties paid to OMERS (1,950) Non-cash interest expense recognized 1,067 Ending balance of debt related to sale of future royalties $ 20,440 Debt - short-term 7,951 Debt - long-term 12,489 Total debt $ 20,440 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Patents, licenses, and other intangible assets | |||
Impairment of intangible assets | $ 0 | $ 0 | |
Abandonment of capitalized intangible assets | 415,000 | 321,000 | |
Impairment loss or recoveries | 0 | 0 | |
Net loss attributable to non-controlling interest | (1,400,000) | 3,300,000 | |
Impairment on equity securities | 20,650,000 | 0 | |
Zenas | |||
Patents, licenses, and other intangible assets | |||
Impairment on equity securities | 20,600,000 | 0 | |
Zenas | Preferred Stock | |||
Patents, licenses, and other intangible assets | |||
Equity shares estimated fair value | 43,560,000 | $ 64,210,000 | |
Zenas | Milestone | Preferred Stock | License Agreement | |||
Patents, licenses, and other intangible assets | |||
Equity shares estimated fair value | $ 10,000,000 | ||
In-process intangible assets | |||
Patents, licenses, and other intangible assets | |||
Abandonment of capitalized intangible assets | $ 400,000 | $ 300,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Fair Value of Financial Instruments | |||
Money Market Funds | $ 31,034 | $ 53,790 | $ 72,394 |
Marketable securities | 615,327 | ||
Fair Value, Recurring | |||
Fair Value of Financial Instruments | |||
Total Fair Value | 618,774 | 668,757 | |
Money Market Funds | |||
Fair Value of Financial Instruments | |||
Money Market Funds | 3,447 | 25,520 | |
Money Market Funds | Fair Value, Recurring | |||
Fair Value of Financial Instruments | |||
Money Market Funds | 3,447 | 25,520 | |
Corporate Securities | |||
Fair Value of Financial Instruments | |||
Marketable securities | 264,629 | 228,723 | |
Corporate Securities | Fair Value, Recurring | |||
Fair Value of Financial Instruments | |||
Marketable securities | 264,629 | 228,723 | |
Government Securities | |||
Fair Value of Financial Instruments | |||
Marketable securities | 350,698 | 414,514 | |
Government Securities | Fair Value, Recurring | |||
Fair Value of Financial Instruments | |||
Marketable securities | 350,698 | 414,514 | |
Level 1 | Fair Value, Recurring | |||
Fair Value of Financial Instruments | |||
Total Fair Value | 3,447 | 25,520 | |
Level 1 | Money Market Funds | Fair Value, Recurring | |||
Fair Value of Financial Instruments | |||
Money Market Funds | 3,447 | 25,520 | |
Level 1 | Corporate Securities | Fair Value, Recurring | |||
Fair Value of Financial Instruments | |||
Marketable securities | 0 | 0 | |
Level 1 | Government Securities | Fair Value, Recurring | |||
Fair Value of Financial Instruments | |||
Marketable securities | 0 | 0 | |
Level 2 | Fair Value, Recurring | |||
Fair Value of Financial Instruments | |||
Total Fair Value | 615,327 | 643,237 | |
Level 2 | Money Market Funds | Fair Value, Recurring | |||
Fair Value of Financial Instruments | |||
Money Market Funds | 0 | 0 | |
Level 2 | Corporate Securities | Fair Value, Recurring | |||
Fair Value of Financial Instruments | |||
Marketable securities | 264,629 | 228,723 | |
Level 2 | Government Securities | Fair Value, Recurring | |||
Fair Value of Financial Instruments | |||
Marketable securities | $ 350,698 | $ 414,514 |
Net Loss Per Common Share (Deta
Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net loss attributable to Xencor, Inc. | $ (68,033) | $ (60,763) |
Denominator: | ||
Weighted-average common shares outstanding used in computing basic net loss (in shares) | 61,212,324 | 59,771,674 |
Weighted-average common shares outstanding used in computing diluted net loss (in shares) | 61,212,324 | 59,771,674 |
Basic net loss per common share (in dollars per share) | $ (1.11) | $ (1.02) |
Diluted net loss per common share (in dollars per share) | $ (1.11) | $ (1.02) |
Marketable Debt and Equity Se_3
Marketable Debt and Equity Securities - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Schedule of Available-for-sale Securities | |||
Money Market Funds | $ 31,034 | $ 53,790 | $ 72,394 |
Amortized Cost | 615,470 | ||
Amortized Cost | 618,917 | 667,455 | |
Gross Unrealized Gains | 210 | 1,379 | |
Gross Unrealized Losses | (353) | (77) | |
Marketable securities | 615,327 | ||
Total investments | 618,774 | 668,757 | |
Money Market Funds | |||
Schedule of Available-for-sale Securities | |||
Money Market Funds | 3,447 | 25,520 | |
Corporate Securities | |||
Schedule of Available-for-sale Securities | |||
Amortized Cost | 264,706 | 228,382 | |
Gross Unrealized Gains | 69 | 342 | |
Gross Unrealized Losses | (146) | (1) | |
Marketable securities | 264,629 | 228,723 | |
Government Securities | |||
Schedule of Available-for-sale Securities | |||
Amortized Cost | 350,764 | 413,553 | |
Gross Unrealized Gains | 141 | 1,037 | |
Gross Unrealized Losses | (207) | (76) | |
Marketable securities | 350,698 | 414,514 | |
Cash and cash equivalents | |||
Schedule of Available-for-sale Securities | |||
Money Market Funds | 3,447 | 25,520 | |
Marketable securities | |||
Schedule of Available-for-sale Securities | |||
Marketable securities | $ 615,327 | $ 643,237 |
Marketable Debt and Equity Se_4
Marketable Debt and Equity Securities - Maturities (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Amortized Cost | |
Mature in one year or less | $ 460,336 |
Mature within two years | 155,134 |
Amortized Cost | 615,470 |
Estimated Fair Value | |
Mature in one year or less | 460,367 |
Mature within two years | 154,960 |
Estimated Fair Value | $ 615,327 |
Marketable Debt and Equity Se_5
Marketable Debt and Equity Securities - Unrealized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Available-for-sale Securities | ||
Fair value, less than 12 months | $ 161,400 | $ 74,619 |
Unrealized losses, Less than 12 months | (77) | (77) |
Fair value, 12 months or greater | 89,549 | 0 |
Unrealized losses, 12 months or greater | (276) | 0 |
Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Fair value, less than 12 months | 51,230 | 8,073 |
Unrealized losses, Less than 12 months | (42) | (1) |
Fair value, 12 months or greater | 53,122 | 0 |
Unrealized losses, 12 months or greater | (104) | 0 |
Government Securities | ||
Schedule of Available-for-sale Securities | ||
Fair value, less than 12 months | 110,170 | 66,546 |
Unrealized losses, Less than 12 months | (35) | (76) |
Fair value, 12 months or greater | 36,427 | 0 |
Unrealized losses, 12 months or greater | $ (172) | $ 0 |
Marketable Debt and Equity Se_6
Marketable Debt and Equity Securities - Equity Securities with Readily Determinable Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Equity Securities | |||
Net gains (losses) recognized on equity securities | $ 2,325 | $ (2,898) | |
Equity securities with readily determinable fair value | 44,535 | $ 42,210 | |
Common Stock | |||
Equity Securities | |||
Equity securities with readily determinable fair value | 44,535 | 42,210 | |
Astria/Catabasis | Common Stock | |||
Equity Securities | |||
Equity securities with readily determinable fair value | 9,823 | 5,360 | |
INmune | Common Stock | |||
Equity Securities | |||
Equity securities with readily determinable fair value | 22,155 | 21,231 | |
Viridian | Common Stock | |||
Equity Securities | |||
Equity securities with readily determinable fair value | $ 12,557 | $ 15,619 |
Marketable Debt and Equity Se_7
Marketable Debt and Equity Securities - Equity Securities Transactions (Details) - Common Stock | Mar. 31, 2024 shares |
License Agreement | Astria | |
Equity Securities | |
Number of shares owned (in shares) | 697,867 |
License Agreement | INmune | |
Equity Securities | |
Number of shares owned (in shares) | 1,885,533 |
Technology License Agreement | Viridian | |
Equity Securities | |
Number of shares owned (in shares) | 717,144 |
Marketable Debt and Equity Se_8
Marketable Debt and Equity Securities - Net Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Marketable Securities [Abstract] | ||
Net and unrealized gain (loss) recognized on equity securities | $ 2,325 | $ (2,898) |
Marketable Debt and Equity Se_9
Marketable Debt and Equity Securities - Equity Securities without Readily Determinable Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Equity securities without readily determinable fair value | |||
Impairment on equity securities | $ (20,650) | $ 0 | |
Zenas | |||
Equity securities without readily determinable fair value | |||
Impairment on equity securities | (20,600) | ||
Zenas | |||
Equity securities without readily determinable fair value | |||
Impairment on equity securities | (20,600) | $ 0 | |
Preferred Stock | Zenas | |||
Equity securities without readily determinable fair value | |||
Equity shares estimated fair value | $ 43,560 | $ 64,210 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 123 Months Ended | ||
Mar. 31, 2024 USD ($) installment $ / shares shares | Mar. 31, 2023 $ / shares shares | Mar. 31, 2024 USD ($) $ / shares shares | Jun. 14, 2023 shares | |
ESPP | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Total number of shares of common stock available for issuance (in shares) | 1,041,340 | 1,041,340 | ||
Awards issued under the plan (in shares) | 733,478 | |||
Unamortized compensation expense | $ | $ 1.4 | $ 1.4 | ||
Period to recognize unamortized compensation expense | 1 year 8 months 12 days | |||
ESPP | Maximum | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Annual percentage increase in shares of common stock available for issuance | 1% | |||
Annual increase in shares of common stock available for issuance (in shares) | 621,814 | |||
RSUs | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Granted (in shares) | 796,660 | |||
Annual installment vesting periods | installment | 3 | |||
Period to recognize unamortized compensation expense | 2 years 3 months 18 days | |||
Unamortized compensation expense related to unvested restricted stock units | $ | $ 40.6 | $ 40.6 | ||
Stock options | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Options granted (in shares) | 1,763,778 | 1,620,256 | ||
Closing price of common stock (in dollars per share) | $ / shares | $ 22.13 | $ 22.13 | ||
Weighted average fair value of options granted (in dollars per share) | $ / shares | $ 22.81 | $ 31.40 | ||
Unamortized compensation expense | $ | $ 61.5 | $ 61.5 | ||
Period to recognize unamortized compensation expense | 2 years 9 months 18 days | |||
The 2023 Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Total number of shares of common stock available for issuance (in shares) | 18,798,477 | 18,798,477 | 3,000,000 | |
The 2023 Plan | RSUs | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Granted (in shares) | 883,327 | |||
The 2013 and 2023 Plans | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Options granted (in shares) | 1,977,176 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total employee, director and non-employee stock-based compensation expense | $ 11,421 | $ 12,599 |
Stock options | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total employee, director and non-employee stock-based compensation expense | 6,873 | 6,983 |
ESPP | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total employee, director and non-employee stock-based compensation expense | 206 | 322 |
RSUs | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total employee, director and non-employee stock-based compensation expense | 4,342 | 5,294 |
General and administrative | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total employee, director and non-employee stock-based compensation expense | 4,699 | 4,276 |
Research and development | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total employee, director and non-employee stock-based compensation expense | $ 6,722 | $ 8,323 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Option Activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Number of Shares Subject to Outstanding Options | |||
Balance at the beginning of the period (in shares) | 11,142,986 | ||
Options granted (in shares) | 1,763,778 | 1,620,256 | |
Options forfeited (in shares) | (206,485) | ||
Options exercised (in shares) | (152,682) | ||
Balance at the end of the period (in shares) | 12,547,597 | 11,142,986 | |
Exercisable options (in shares) | 8,185,860 | ||
Weighted Average Exercise Price (Per Share) | |||
Balance at the beginning of the period (in dollars per share) | $ 29.60 | ||
Options granted (in dollars per share) | 22.81 | ||
Options forfeited (in dollars per share) | 31.55 | ||
Options exercised (in dollars per share) | 11.70 | ||
Balance at the end of the period (in dollars per share) | 28.84 | $ 29.60 | |
Exercisable (in dollars per share) | $ 29.38 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted-average remaining contractual term, balance outstanding | 6 years 2 months 19 days | 6 years 10 days | |
Weighted-average remaining contractual term, exercisable | 4 years 9 months 3 days | ||
Aggregate intrinsic value, balance outstanding | $ 9,618 | $ 9,977 | |
Aggregate intrinsic value, exercisable | $ 9,465 |
Stock-Based Compensation - FV o
Stock-Based Compensation - FV of Employee Stock Options (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Stock options | ||
Weighted average assumptions for estimated fair value of employee stock options | ||
Expected term (years) | 6 years 4 months 24 days | 6 years |
Expected volatility (as a percent) | 50% | 50.50% |
Risk-free interest rate (as a percent) | 4.12% | 4.26% |
Expected dividend yield | 0% | 0% |
ESPP | ||
Weighted average assumptions for estimated fair value of employee stock options | ||
Expected volatility, low end of range (as a percent) | 43% | 43.20% |
Expected volatility, high end of range (as a percent) | 55.70% | |
Risk-free interest rate, low end of range (as a percent) | 4.71% | 0.13% |
Risk-free interest rate, high end of range (as a percent) | 5.39% | 4.72% |
Expected dividend yield | 0% | 0% |
ESPP | Minimum | ||
Weighted average assumptions for estimated fair value of employee stock options | ||
Expected term (years) | 6 months | 6 months |
ESPP | Maximum | ||
Weighted average assumptions for estimated fair value of employee stock options | ||
Expected term (years) | 2 years | 2 years |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock Units (Details) - RSUs | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Restricted Stock Units | |
Beginning balance (in shares) | shares | 1,490,040 |
Granted (in shares) | shares | 796,660 |
Vested (in shares) | shares | (483,812) |
Forfeited (in shares) | shares | (91,443) |
Ending balance (in shares) | shares | 1,711,445 |
Weighted Average Grant Date Fair Value (Per unit) | |
Weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares | $ 30.66 |
Weighted average grant date fair value, granted (in dollars per share) | $ / shares | 22.83 |
Weighted average grant date fair value, vested (in dollars per share) | $ / shares | 32.34 |
Weighted average grant date fair value, forfeited (in dollars per share) | $ / shares | 30.76 |
Weighted average grant date fair value, ending balance (in dollars per share) | $ / shares | $ 26.52 |
Leases - Agreements (Details)
Leases - Agreements (Details) $ in Thousands | 1 Months Ended | 123 Months Ended | ||||
Jun. 30, 2021 phase | Mar. 31, 2024 USD ($) | Sep. 30, 2026 USD ($) | Dec. 31, 2023 USD ($) | Aug. 31, 2022 USD ($) | Aug. 01, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | ||||||
Payments for (proceeds from) tenant allowance | $ 700 | |||||
Cash collateral for Letters of Credit | 382 | $ 380 | ||||
Letter of Credit | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Letter of Credit amount | $ 400 | |||||
Monrovia, CA - office and laboratory space | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Renewal term | 5 years | |||||
Pasadena, CA - office and laboratory space | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Phases of lease term | phase | 2 | |||||
Improvement allowance | $ 5,000 | $ 17,000 | ||||
Forecast | Pasadena, CA - office and laboratory space | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Improvement allowance | $ 3,300 |
Leases - Undiscounted Cash Flow
Leases - Undiscounted Cash Flows (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
For the remainder of 2024 | $ 4,460 | |
2025 | 8,022 | |
2026 | 9,238 | |
2027 | 9,560 | |
2028 | 9,076 | |
2029 | 9,331 | |
Thereafter | 57,104 | |
Total undiscounted lease payments | 106,791 | |
Less: Tenant allowance | (3,252) | |
Less: Imputed interest | (34,650) | |
Present value of lease payments | 68,889 | |
Lease liabilities - short-term | 2,079 | $ 3,435 |
Lease liabilities - long-term | $ 66,810 | $ 59,025 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,881 | $ 2,181 |
Variable lease cost | 830 | 234 |
Total lease costs | 2,711 | 2,415 |
Cash paid for amounts included in the measurement of lease liabilities | $ 1,070 | $ 724 |
Remaining lease term | 10 years 10 months 24 days | 11 years 9 months 18 days |
Discount rate | 7% | 8.90% |
Collaboration and Licensing A_3
Collaboration and Licensing Agreements - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 13 Months Ended | ||||||
Oct. 01, 2021 | Oct. 31, 2021 USD ($) | Feb. 28, 2019 USD ($) | Jan. 31, 2013 program | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Sep. 30, 2019 target | Dec. 31, 2021 agreement | Dec. 31, 2023 USD ($) | |
Collaboration research and licensing agreements | |||||||||
Receivable | $ 9,580 | $ 11,290 | |||||||
Unrealized gain (loss) on equity securities | 2,325 | $ (2,898) | |||||||
Number of technology license agreements | agreement | 2 | ||||||||
Impairment on equity securities | (20,650) | 0 | |||||||
Deferred revenue | 0 | 30,100 | |||||||
Zenas | |||||||||
Collaboration research and licensing agreements | |||||||||
Impairment on equity securities | (20,600) | 0 | |||||||
Zenas | Preferred Stock | |||||||||
Collaboration research and licensing agreements | |||||||||
Equity shares estimated fair value | 43,560 | 64,210 | |||||||
Option and License agreement | Alexion | |||||||||
Collaboration research and licensing agreements | |||||||||
Number of different target programs | program | 1 | ||||||||
Receivable | 0 | ||||||||
Deferred revenue | 0 | ||||||||
Option and License agreement | Alexion | Royalties | |||||||||
Collaboration research and licensing agreements | |||||||||
Revenue recognized | 9,400 | 10,500 | |||||||
Technology License Agreement | Astria/Catabasis | |||||||||
Collaboration research and licensing agreements | |||||||||
Deferred revenue | 0 | ||||||||
Unrealized gain (loss) on equity securities | 4,500 | (400) | |||||||
Technology License Agreement | Viridian | |||||||||
Collaboration research and licensing agreements | |||||||||
Revenue recognized | 0 | 0 | |||||||
Deferred revenue | 0 | ||||||||
Unrealized gain (loss) on equity securities | (3,100) | (2,700) | |||||||
Technology License Agreement | Vega Therapeutics, Inc. | |||||||||
Collaboration research and licensing agreements | |||||||||
Revenue recognized | $ 500 | 500 | 0 | ||||||
Technology License Agreement | Gale | |||||||||
Collaboration research and licensing agreements | |||||||||
Transaction price | 7,500 | ||||||||
Service agreement charges | 2,700 | ||||||||
Collaboration and License Agreement | Genentech | |||||||||
Collaboration research and licensing agreements | |||||||||
Revenue recognized | 0 | 0 | |||||||
Initial cost-sharing percentage | 45% | ||||||||
Royalty milestones | $ 600,000 | ||||||||
Collaboration and License Agreement | Genentech | Development-based | |||||||||
Collaboration research and licensing agreements | |||||||||
Royalty milestones | 115,000 | ||||||||
Collaboration and License Agreement | Genentech | Regulatory-based | |||||||||
Collaboration research and licensing agreements | |||||||||
Royalty milestones | 185,000 | ||||||||
Collaboration and License Agreement | Genentech | Sales-based | |||||||||
Collaboration research and licensing agreements | |||||||||
Royalty milestones | $ 300,000 | ||||||||
Collaboration and License Agreement | Genentech | Research service | |||||||||
Collaboration research and licensing agreements | |||||||||
Deferred revenue | 0 | ||||||||
Collaboration and License Agreement | Genentech | XmAb24306 | |||||||||
Collaboration research and licensing agreements | |||||||||
Payable related to cost-sharing development activities | 3,100 | ||||||||
Collaboration and License Agreement | Janssen | |||||||||
Collaboration research and licensing agreements | |||||||||
Revenue recognized | 0 | ||||||||
Deferred revenue | 0 | ||||||||
Collaboration and License Agreement | MorphoSys | |||||||||
Collaboration research and licensing agreements | |||||||||
Deferred revenue | 0 | ||||||||
Collaboration and License Agreement | MorphoSys | Royalties | |||||||||
Collaboration research and licensing agreements | |||||||||
Revenue recognized | 2,900 | 1,800 | |||||||
Receivable | 3,400 | ||||||||
License Agreement | INmune | |||||||||
Collaboration research and licensing agreements | |||||||||
Unrealized gain (loss) on equity securities | 900 | 200 | |||||||
License Agreement | Zenas | |||||||||
Collaboration research and licensing agreements | |||||||||
Revenue recognized | 0 | ||||||||
Deferred revenue | 0 | ||||||||
License Agreement | Zenas | Milestone | Preferred Stock | |||||||||
Collaboration research and licensing agreements | |||||||||
Equity shares estimated fair value | $ 10,000 | ||||||||
Second Collaboration And License Agreement | Janssen | |||||||||
Collaboration research and licensing agreements | |||||||||
Revenue recognized | 0 | 5,200 | |||||||
Receivable | 1,900 | ||||||||
Deferred revenue | 0 | ||||||||
Research license term | 2 years | ||||||||
Second Collaboration And License Agreement | Janssen | Maximum | |||||||||
Collaboration research and licensing agreements | |||||||||
Percentage of responsibility for development costs | 20% | ||||||||
Second Collaboration And License Agreement | Janssen | Minimum | |||||||||
Collaboration research and licensing agreements | |||||||||
Share development percentage | 80% | ||||||||
Patent License Agreement | Vir | |||||||||
Collaboration research and licensing agreements | |||||||||
Number of different target programs | target | 2 | ||||||||
Receivable | 0 | ||||||||
Deferred revenue | 0 | ||||||||
Patent License Agreement | Vir | Royalties | |||||||||
Collaboration research and licensing agreements | |||||||||
Revenue recognized | $ 0 | $ 1,500 |
Collaboration and Licensing A_4
Collaboration and Licensing Agreements - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Collaboration research and licensing agreements | ||
Revenue recorded | $ 12,805 | $ 18,962 |
Research collaboration | ||
Collaboration research and licensing agreements | ||
Revenue recorded | 0 | 200 |
Milestone | ||
Collaboration research and licensing agreements | ||
Revenue recorded | 500 | 5,000 |
Royalties | ||
Collaboration research and licensing agreements | ||
Revenue recorded | 0 | 13,800 |
Non-cash royalties | ||
Collaboration research and licensing agreements | ||
Revenue recorded | 12,300 | 0 |
Alexion | ||
Collaboration research and licensing agreements | ||
Revenue recorded | 9,400 | 10,500 |
Janssen | ||
Collaboration research and licensing agreements | ||
Revenue recorded | 0 | 5,200 |
MorphoSys | ||
Collaboration research and licensing agreements | ||
Revenue recorded | 2,900 | 1,800 |
Vir | ||
Collaboration research and licensing agreements | ||
Revenue recorded | $ 0 | $ 1,500 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 0 | $ 0 |
Sales of Future Royalties - Nar
Sales of Future Royalties - Narrative (Details) - Royalties $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Alexion | Option and License agreement | |
Sales of Future Royalties [Line Items] | |
Non-cash revenue recognized | $ 9.4 |
Deferred revenue | 147.5 |
MorphoSys | Collaboration and License Agreement | |
Sales of Future Royalties [Line Items] | |
Non-cash revenue recognized | $ 2.9 |
Interest rate | 21.10% |
Non-cash interest expense recognized | $ 1.1 |
Sales of Future Royalties - Deb
Sales of Future Royalties - Debt of Future Royalties (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Sale of Future Royalty [Roll Forward] | |
Beginning balance of debt related to sale of future royalties | $ 20,974 |
Royalties owed to OMERS | 349 |
Royalties paid to OMERS | (1,950) |
Non-cash interest expense recognized | 1,067 |
Ending balance of debt related to sale of future royalties | 20,440 |
Debt - short-term | 7,951 |
Debt - long-term | 12,489 |
Total debt | $ 20,440 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 03, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Subsequent Event [Line Items] | |||
Impairment on equity securities | $ (20,650) | $ 0 | |
Zenas | |||
Subsequent Event [Line Items] | |||
Impairment on equity securities | $ (20,600) | ||
Subsequent Event | Series C Preferred Stock | Zenas | |||
Subsequent Event [Line Items] | |||
Impairment on equity securities | $ (20,600) |